Introduction to setting up a Maltese subsidiary
Malta has a range of beneficial factors encouraging foreign investment into the country. Being a member state of the EU and a member of the Eurozone, Malta is particularly attractive for EU investors or for non-EU investors as a gateway into the EU. English is the national business language and with a European time zone, skilled workforce and modern telecommunications infrastructure, Malta is a country of choice when expanding your business abroad.
What are the main formalities of a Maltese subsidiary?
As with all companies established in Malta, the setup of a subsidiary is regulated by the Malta Companies Act. Some preliminary requirements for the registration of a subsidiary in Malta include:
The Memorandum & Articles of Association of the subsidiary detailing the company’s intended activities
A minimum share capital amount of €1,165
The nomination of at least one company secretary and one director
A registered office in Malta
All required documents must be officially apostilled and translated into English by an authorised translator.
What are the accounting and taxation requirements of a Maltese subsidiary?
The Malta Institute of Accountants and the Maltese Accountancy Board monitor the national accountancy requirements.
Malta subsidiaries would typically be required to adhere to IFRS (International Financial Reporting Standards) as adopted by the European Commission by virtue of the Accounting Regulation 1606/2002 or to General Accounting Principles for Smaller Entities (GAPSE).
Every Maltese company is required to keep proper accounting records detailing its transactions and financial position at one year intervals. The accounting records are generally kept at the registered office of the company.
Registration with the Inland Revenue Department to obtain a tax registration number is required by Malta subsidiaries for taxation purposes. VAT registration is also required depending on the subsidiaries activities. VAT returns should be filed quarterly and tax returns annually.
Exemption from stamp duty levied upon a transfer of the subsidiary’s shares may be applicable.
Please contact us for further information on accountancy services and tax rates in Malta.
Subsidiary Formation Packages
Our unique one stop solution ensures that every aspect of your incorporation is proficiently completed. This is managed through our subsidiary formation packages, which include the organisation of services such as registration of the subsidiary for the purposes of income tax and VAT. We have long-standing experience and expertise in the requirements of European company formation and with our support your formation process will be effectively completed with as little disruption to your business as possible.
For further information on subsidiaries in Malta, please contact us using the form below.